We have put together a full list of trading firms that will definitely lose you money if you choose to work with them. These companies are not trustworthy because they don’t have a trading license. They also have all the signs of being scams. Check out what we learned about how brokers work before you decide to work with one. On the Blacklist of Forex Scam Brokers 2023 page, you can see a list of all of them, or use the search box below to find the specific broker you want to look at:
Forex trading scams:
| Broker | Year of scam |
|---|---|
| 24FX | 2014 |
| 24options | 2018 |
| 4XP | 2012 |
| 770capital | 2021 |
| Absolute Markets | 2022 |
In the past few years, forex trading has become very popular because it is very flexible and has the potential for big profits. But because the Forex market is autonomous and very complicated, it is also a great place for scams and fraud to happen.There are many types of forex scams, but the ones that happen most often involve fake advertising about trading conditions, claims of very high returns, or just stealing traders’ money. Scam dealers may look like real ones at first glance, but they use many tricks to take advantage of buyers who don’t know what’s going on.
This piece has an up-to-date list for 2023 of Forex companies that have been found to be scams or are thought to be acting dishonestly.
People who scam in the Forex market: Who are They?
Is it possible to be scammed in Forex?
There are many types of forex crooks, but most of them fit into a few main groups:
1. Unregulated, fly-by-night dealers that prey on new trades. Such con artists set up “boiler room” businesses to get as many deposits as possible before closing down.
2. Ponzi or pyramid schemes that use deposits to pay out withdrawals until the whole thing falls apart. People fall for these scams because they offer unusually high and steady returns.
3. Bucket shops are illegal traders who trade on the other side of a client’s trade and make money if the customer loses. The deals are “bucketed” instead of being carried out on the open market.
4. Fake trade websites (Phishing)—Scammers may pretend to be real dealers on these sites.
5. so-called “gurus” who sell expensive workshops or software with trade techniques that can’t go wrong but sound good.
Bid/Ask spread scams, signal buyers, transaction fraud, and “trading bots” scams are some other complex types of fraud. This kind of scam is talked about in more depth in our piece called “How to Avoid Forex Trading Scams?”
How to tell if a Forex deal is a scam: three signs
If you’re an investor, you should be aware of forex scams because they can happen to anyone. It’s important to know the warning signs that you might be working with a scam when you’re in the Forex market. These are the three most important signs to look out for:
Claim not fair
Be wary of Forex services or traders who say they can give you great gains with little or no risk. There are risks with all investments, and Forex dealing is no different. Claims that are very positive are often used as bait to get people who don’t know what’s going on. Never believe something that seems too good to be true.
Wants to borrow money
When a trader or service asks for money up front, be wary, especially if they’re persistent or try to force you to pay. To get “exclusive” trade tips or secret information, con artists often ask for money. A trustworthy trade site or service will have clear prices and won’t ask for money up front in exchange for claims of huge profits.
Lifestyle photos or reviews from sellers who have been “successful”
There are lots of pictures on social media sites of “successful” sellers living fancy lives with fancy cars and faraway holidays. Often, these come with endorsements that say the person made a lot of money in a short amount of time. You can be successful at Forex dealing, but stories like these are often used to trick people into falling for a scam.
Forex scams that happen a lot
Scams in forex come in many forms, and all of them are meant to steal your hard-earned money. These are some of the most popular Forex scams you should be aware of:
Scams with Forex mutual funds (PAMM)
This is what PAMM stands for: “Percent Allocation Money Management.” In this scam, con artists say they will take your money along with other clients’ and handle it properly. The catch is that these so-called “managers” don’t always have the right credentials or governmental control, which means that buyers who aren’t careful lose a lot of money.
Trading robots and EAs scam
Expert Advisors (EAs) and automated trade robots (ATRs) promise easy earnings with little work. Scammers market these bots as guaranteed ways to make a lot of money. But most of these robots don’t work well or are scams that will leave you with nothing but empty pockets.
Forex scams and trading signs
As the name suggests, trading signs tell you to make a trade at a certain time and price. While there are real trade signal services, there are also a lot of scams that make big claims about how successful they are without any proof. To get people to invest in these fake businesses, they often use flashy ads and fake endorsements. If you join, you might find that the signs are made up at random or taken from other sources, which could cost you a lot of money.
Forex “holy grail” scams
Some con artists say they have found the best trading plan or method that will get you almost perfect results. They sell this “holy grail” to buyers who don’t know what it is in the form of a training course or software. Always keep in mind that investing has risks, and there is no way to make sure you will make money every time. Be wary of people who try to sell you a secure method.
Scams with guaranteed returns
One of the oldest tricks in the book is to offer a certain amount of money back. Scammers will say they have a secret formula or inside information that will help you make a lot of money. But Forex dealing is dangerous by nature, and no one can promise profits. Stay away from people who make such claims.
Changing the price
Brokers who aren’t honest may change market prices to set off stop-loss orders or keep positions from making money. This type of scam is more sneaky because it includes trade terms being changed and trust being broken. If you want to avoid this kind of scam, always choose an approved broker with a good name.
High power for the situation
Some companies give very high leverage to buyers who want to make money quickly. While leverage can help you make more money, it also makes it more likely that you will lose a lot of money. Traders should be aware that scam companies that offer high leverage often have other terms and conditions that work against them.
Client bank accounts that are not separated
Client funds and the broker’s running funds are kept separate in different bank accounts in a legal dealing business. Scam agents might not do this, which means your money could be at risk if the company runs into money problems. Before starting an account, you should always check to see if the company is regulated and what their cash division practices are.
How to Spot Scams in Forex Trading?
Scammers, crooks, and hackers have long been drawn to the Forex market because of its huge size and complex nature. They want to take advantage of dealers who don’t know what’s going on. The situation is better now that there are more rules, but buyers should still be careful and look out for possible scams. The fastest way is to look at our site; we’ve already saved you time by picking out both honest traders and con artists from all the other companies. All you have to do is look at our lists of scores.
We’ll tell you about the main things crooks do, though, if you need more information. These are some:
They promise a lot of money.
Such claims are a surefire way to tell if a Forex broker is a con artist, since no real broker can offer traders a high return. Also, data show that only 1 to 25% of new traders go on to become skilled traders on the foreign exchange market and start making good money.
They say there’s no chance of harm.
Another clear sign of a scam is that the trader’s success doesn’t depend on the broker. What’s most important is the trader’s plan, or how he spreads out his risks. As an example, a real broker might use auto dealing or split a sum between several exchange pairs. There is no way to fully remove the risk of Forex.
Not any rules
Forex dealers who are following the law must be supervised by a licensed organization, which could be a public or private one. You can find out about regulators on the website of the dealer and on the website of the regulator. It’s easy to find out if the license is still good since this information is public. Of course, there are no rules about what banned companies can do.
Not being professional
A lot of different things can fall under this, like cold calls. You know for sure that someone is trying to scam you if they call, text, or otherwise get in touch with you from a Forex company you have never heard of and offer to work with you. Also, con artists always want you to pay them “right now.” They talk about how qualified their boss is (PAMM accounts), but the only proof they have is Excel tables that show how profitable they are.
Questionable plans
Some Forex companies on the ban use trade platforms that aren’t well known or aren’t used by most people. These aren’t the well-known MT5, MT4, LIBERTEX, QUIK, TRANSAQ, CQG, or ROX. Now, in 2023, the broker doesn’t need to make a computer because either of the ones above is easy and safe for both the user and the broker.
Tools with doubt
It’s very possible that a broker who focuses on PAMM accounts and binary options and promises huge earnings is a con artist. However, these tools are also useful, but they can’t be a trader’s main source of income. And yes, PAMM funds do not promise a lot of money.
Not real ratings
A lot of Forex firms that are on blacklists like to brag about how high they scored in some questionable poll. But they only show scores that are on their own site or on a third-party site that belongs to the same person and doesn’t matter in the Forex market.
The SSL certificate
A lot of buyers don’t pay attention to this important fact. An SSL certificate is like a digital signature for the site. It makes sure that the link to the computer is safe and private. In other words, there is almost no chance that you will get malware or bugs on this website that will send your information to other people.
Why are Forex Brokers Ruled Over, and Why Should We Care?
We’ve already talked briefly about how Forex companies are regulated. Find out more about it here. The world foreign exchange market (interbank) is based on laws. A certain type of regulatory companies are defined by this set of laws. They have licenses to work in more than one country and trade in currencies and securities around the world. Their job is to keep an eye on and study other market players to make sure they are following the law and meeting financial security standards. To put it simply, the regulator checks to see if the broker is allowed to work in the Forex market and if he is following the regulator’s rules. Then they might be fake if they aren’t.
Each government agency has its own way of checking up on Forex dealers. In 2023, the dealers have to follow a strict set of rules. They should have a certain amount of money in their account, all of their financial transactions to be clear, all of the legal paperwork they need, and an official website that meets all safety standards. As for authority, the regulator can be either local (works within the country) or foreign (works all over the world).
| Here are the main international Forex regulators: | |
|---|---|
| IFSC | Belize International Financial Services Commission; |
| CySEC | Cyprus Securities and Exchange Commission; |
| FSC | Mauritius Financial Services Commission; |
| FCA | UK Financial Conduct Authority; |
| FCSA | South Africa Financial Sector Conduct Authority; |
| SCB | Securities Commission of the Bahamas. |